Morgan Stanley, American Home Battle Over Loans

Law360, New York (August 16, 2007, 12:00 AM EDT) -- Morgan Stanley has pressed American Home Mortgage Investment Corp. to hand over mortgage loans valued at more than $519 million, claiming that the bankrupt company no longer has the right to service the loans.

Morgan Stanley sought an emergency court order Wednesday from the U.S. Bankruptcy Court for the District of Delaware in a move to wrest control of the loans following American Home’s sudden fall into bankruptcy on Aug. 6.

American Home, which once was a leading home lender in the U.S., has since moved...